Silver Intraday: Technical Rebound in Sight
George Lam September 29, 2020 12:45 PM
Spot silver bounced 3.4% on Monday, after plunging 14.6% last week, as the U.S. dollar took a breath.
Spot silver bounced 3.4% on Monday, after plunging 14.6% last week, as the U.S. dollar took a breath. Market sentiment was also lifted by a 3-day rebound in the three major U.S. stock indices.
The stabilization of silver price looks set to continue as investors turn their focus on Wednesday’s U.S. ADP private jobs data and Friday's non-farm payrolls report.
From a technical point of view, spot silver is extending its technical rebound as shown on the 1-hour chart. It has advanced further after breaking above a bearish channel, while the relative strength index shows bullish divergence. The level at $22.50 might be considered as the nearest support, with prices trending to test the 1st and 2nd resistance at $24.43 and $25.28 respectively. Alternatively, losing $22.50 would suggesting that the next support at $21.65 may be challenged again.
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